Circular No. 04/2007/TT-BKH guiding the implementation of the Regulation on management and use of official development assistance funds.

CIRCULAR

Guidelines for implementing the Regulation on management and use

of official development assistance funds

(issued together with Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government)

Pursuant to Decree No. 61/2003/NĐ-CP dated June 6, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment;

Pursuant to Article 3 of Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government on the issuance of the Regulation on management and use of official development assistance funds,

The Ministry of Planning and Investment guides the implementation of Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government on the issuance of the Regulation on management and use of official development assistance funds (hereinafter referred to as the Regulation) as follows.

Part I

GENERAL PROVISIONS

1. SCOPE OF APPLICATION REGULATIONS SET OUT IN POINTS B AND C, CLAUSE 2, ARTICLE 1 OF THE REGULATION ARE GUIDED AS FOLLOWS:

1. Non-reimbursable element: The method for calculating the non-reimbursable element is specified in Appendix 1 of this Circular.

2. Loans from donors with favorable conditions regarding interest rates, grace periods, and repayment periods that do not meet the "Non-reimbursable element" stipulated in points b and c, Clause 2, Article 1 of the Regulation shall fall within the scope of application of this Regulation if:

a) Such loans are within the framework of official development assistance between the Government of Vietnam and donors (national programs, credit limits, and other forms of assistance);

b) The use of such loans complies with the procedures and requirements of the donor and Vietnam similar to those for concessional loans stipulated in points b and c, Clause 2, Article 1 of the Regulation.

In other cases, if the loan from the donor does not meet the conditions mentioned in points a and b above, the Ministry of Planning and Investment will consult the OECD-DAC organization to consider applying the Regulation to such a loan.

II. CLARIFICATION OF TERMS DEFINED IN CLAUSES 4, 6, 9, 10, 11, 15, AND 16 OF ARTICLE 4 OF THE REGULATION ARE CLARIFIED AS FOLLOWS:

1. Programs and projects include:

a) Programs and projects with one or more components in one or several fields, but managed by only one managing agency;

b) Programs and projects consisting of multiple component projects with the participation of multiple managing agencies, including one coordinating managing agency and project managing agencies. In this case, the program or project is called a composite program or project. The coordinating managing agency is called the managing agency of the composite program or project.

2. Regional programs and projects are programs and projects funded for a group of countries in a geographic region to cooperate in implementing activities in a specific field to achieve certain goals for common benefit.

3. A program or project may include both technical assistance content and construction investment content. If the technical assistance content accounts for 50% or more of the value of ODA funds, the program or project is considered a technical assistance program or project. If the construction investment content accounts for 50% or more of the value of ODA funds, the program or project is considered a construction investment program or project.

4. "Program or sector approach": Donors base their support on programs or development plans of sectors or fields approved by competent authorities in Vietnam to provide additional resources to ensure that the program is implemented in a synchronized, sustainable, and effective manner.

In some cases, the program or sector approach may be accompanied by certain conditions agreed upon between the donor and Vietnam to encourage the implementation of certain development policies.

If the policy conditions set by the donor exceed the decision-making authority of the managing agency, the managing agency must submit them to the Prime Minister for consideration and decision.

The program or sector approach can be provided through the following forms of aid:

a) "Budget support": Donors directly supplement ODA funds to the state budget, central budget, or provincial, city, or district budgets to support the achievement of economic and social development goals during the planning period, in compliance with the State Budget Law and Vietnam's regulations on budget planning, execution, monitoring, tracking, and evaluation.

Budget support includes:

- General budget support (GBS): One or a group of donors provide ODA funds to the central state budget, local budgets, or the budget of a sector.

- Targeted budget support (TBS): One or a group of donors provide ODA funds to the budget of a specific target program.

b) Pooling fund: One or a group of donors agree to contribute ODA funds to a common pool to finance the implementation of a program or a specific field.

c) Credit line: Donors provide a credit limit to a financial institution or bank in Vietnam to finance activities agreed upon with the representative borrower on behalf of the Government of Vietnam.

d) Sector loan: Donors provide ODA loans to implement projects aimed at supporting the development of sectors or fields with multiple beneficiaries and implemented over a wide area. A sector loan falls under the category of composite programs or projects.

Part II

MOVING FORWARD WITH ODA AND PREPARATION

OF THE LIST OF ODA ASSISTANCE REQUIREMENTS

I. COORDINATION FOR ODA MOVEMENT AS PROVIDED IN ARTICLE 6 OF THE REGULATION IS GUIDED AS FOLLOWS:

1. The Ministry of Planning and Investment leads coordination with relevant Vietnamese agencies, the World Bank, and other donors in preparing the content and organizing the Mid-Term Consultative Group Meeting (CG) and the annual formal CG meeting for Vietnam; leads Vietnam's participation in international forums on ODA for Vietnam.

Within ten working days from the date of conclusion of the Conference or Forum, the Ministry of Planning and Investment shall submit a report to the Prime Minister on the results of the Conference or Forum and widely publicize the results and documents of the Conference or Forum on the Ministry's electronic news website (website) and other mass media.

2. In cases where the managing agencies have a need to mobilize ODA during high-level visits or negotiations of the Party and State, the managing agency shall coordinate with the Ministry of Planning and Investment in proposing the content of ODA mobilization before submitting it for the Prime Minister's consideration and decision to include it in the work program (negotiations) with countries and funding organizations.

3. Ministries, sectors, provincial People's Committees shall organize sectoral, regional, and local ODA mobilization conferences in accordance with current regulations on organizing international conferences and seminars.

During the preparation and organization of sectoral, regional, and local ODA mobilization conferences, the organizing agencies at all levels shall coordinate with the Ministry of Planning and Investment on related issues such as policies and guidelines for ODA mobilization for sectors, regions, and localities; sharing necessary information on sources and conditions for funding, procedures and formalities for funding to ensure that ODA mobilization activities are consistent with overall policies, practical, and highly effective.

Within ten working days from the date of conclusion of the sectoral, regional, and local ODA mobilization conference, the organizing agency must submit a report to the Prime Minister on the conference results, simultaneously sending it to the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Foreign Affairs to coordinate subsequent activities to maximize the outcomes of the ODA mobilization conferences. These reports will be widely published on the Ministry of Planning and Investment's electronic news website and those of the ministries, sectors, and localities hosting the ODA mobilization conferences.

4. When there is a need to organize regional, inter-regional, inter-locality ODA mobilization conferences or upon request of provinces and cities within a region, inter-region, or inter-locality, the Ministry of Planning and Investment or another agency designated by the Prime Minister's decision shall host the ODA mobilization conference for the region, inter-region, or inter-locality in accordance with current regulations on organizing international conferences and seminars.

Within ten working days from the date of conclusion of the conference, the Ministry of Planning and Investment or the organizing agency must submit a report to the Prime Minister on the conference results, simultaneously sending it to participating provinces and cities and relevant ministries and agencies. The report on the results of the ODA mobilization conference will be widely published on the Ministry of Planning and Investment's electronic news website and other mass media.

5. Upon request of the Ministry of Foreign Affairs or diplomatic representative offices of the Socialist Republic of Vietnam abroad, the Ministry of Planning and Investment shall provide necessary information and documents about development cooperation in Vietnam and related donors; about the policies of the Party and State in attracting and utilizing ODA to conduct ODA mobilization work.

II. PROCEDURE FOR BUILDING THE LIST OF REQUIREMENTS FOR ODA FINANCING AS PROVIDED IN CLAUSES 2 AND 3 OF ARTICLE 7 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

1. Step 1: Preparation for Building the List of Requirements for ODA Financing for Each Donor

Managing agencies and units requiring ODA financing prepare and study the following related documents:

a) National, sectoral, and local development plans; public investment programs; national target programs and sectoral/local target programs; ODA-related comprehensive documents; strategic directions for foreign borrowing and repayment and strategic directions for attracting and using official development assistance in each period; criteria system for compiling the List of Requirements for ODA Financing;

b) Information and documents published by donors (donor aid policies and programs; donor funding programs and priority areas for Vietnam; funding procedures and formalities). This information and documentation is published on the embassy or aid agency's electronic news website, in publications issued by these agencies. Vietnamese organizations and units interested may directly contact the embassy or aid agency of the donor in Vietnam to request provision of these documents;

c) Information on the Ministry of Planning and Investment's electronic news website including ODA capital commitments, conditions and procedures for funding; reports on cooperation development negotiation results with related donors; medium-term funding programs signed with donors;

d) Circulars from the Ministry of Planning and Investment informing the exchange of opinions or negotiations sent to managing agencies. This document is sent to managing agencies no later than three months before the Ministry of Planning and Investment conducts exchanges or negotiations with donors.

2. Step 2: Draft Detailed Program and Project Proposals for Submission to Managing Agencies

Based on the information provided in Step 1, units requiring ODA financing proactively or under the guidance of managing agencies shall draft detailed program and project proposals according to the contents stipulated in Point b, Clause 2, Article 7 of the Regulations and according to the Detailed Project Proposal for Technical Assistance (Annex 2a); Detailed Project Proposal for Investment Projects Using ODA Funds (Annex 2b), Detailed Program Proposal Using ODA Funds (Annex 2c) and Detailed ODA Support Proposal Accessing Programs or Sectors (Annex 2d) of this Circular.

For block programs/projects, managing agencies propose block programs/projects, coordinating with managing agencies expected to participate in the block programs/projects to draft detailed program/project proposals according to the guidelines in Annex 2e of this Circular.

3. Step 3: Selecting Programs and Projects to Be Included in the List of Requirements for ODA Financing

Managing agencies shall review and select ODA programs and projects proposed by subordinate units based on the following grounds:

a) The proposed program or project must fall within the priority areas for ODA use as stipulated in Article 3 and the basis for mobilizing ODA as stipulated in Article 5 of this Regulation;

b) The proposed program or project must be consistent with the policies and capabilities of the donor;

c) The detailed outline of the ODA program or project must meet the requirements set forth in this Circular;

d) The entity proposing the ODA program or project must have the capacity to receive, manage, and organize the implementation of the program or project, as well as exploit and utilize the results of the program or project after completion if assigned as the main subject of the program or project.

4. Step 4: Prepare and submit the List of ODA Funding Requests

Within two months prior to the date when the Ministry of Planning and Investment exchanges opinions or negotiates with each specific donor, the managing agency shall send to the Ministry of Planning and Investment a complete and valid dossier including the formal document from the managing agency requesting funding, which must provide a summary explanation of the bases for each proposed program or project, along with eight copies of the detailed outlines of each proposed program or project seeking ODA funding in both Vietnamese and English. For regional programs or projects, the managing agency proposing such programs or projects must also submit the agreement documents from the anticipated participating agencies.

5. Step 5: Compile and submit the List of ODA Funding Requests to the Prime Minister

After receiving a complete and valid dossier from the managing agency proposing to include programs or projects in the List of ODA Funding Requests, the Ministry of Planning and Investment will compile the List based on the priority areas for ODA use as stipulated in Article 3, the basis for mobilizing ODA as stipulated in Article 5 of this Regulation, the system of criteria for compiling the List of ODA Funding Requests as set out in this Circular, and taking into account the opinions of state management agencies on ODA and related agencies, consulting with donors to compile the List of ODA Funding Requests proposed by the managing agencies.

In cases where multiple localities require ODA for the same specific field but the donor's ODA funds for that field are limited, the Ministry of Planning and Investment will use the system of criteria specified in Appendix 3 of this Circular to select one or more suitable localities to participate in the program or project.

At least one month before exchanging opinions or negotiating with the donor, the Ministry of Planning and Investment will submit to the Prime Minister the List of ODA Funding Requests for each donor, accompanied by the detailed outlines of each program or project. In cases where there are differing opinions regarding the content of the program or project, the Ministry of Planning and Investment will compile all opinions, propose solutions, and report to the Prime Minister for consideration and decision.

For other cases, the compilation of the List of ODA Funding Requests is guided as follows:

- In cases where the donor does not have a regular ODA provision program for Vietnam or does not have an agreed negotiation schedule for annual or periodic development cooperation programs, the managing agency and subordinate units requiring ODA funds from this donor shall proactively seek information and materials about the donor and develop detailed outlines of the requested programs or projects based on the guidance provided in this Circular. Subsequently, the managing agency shall submit to the Ministry of Planning and Investment a formal request to include the program or project in the List of ODA Funding Requests, along with the detailed outlines of each program or project as directed in point 4 of this section.

Based on each specific case, taking into account the results of discussions with the donor and following the guidance of this Circular, the Ministry of Planning and Investment will compile and submit to the Prime Minister the List of ODA Funding Requests.

- In cases where the donor initiatively proposes and agrees with the managing agency or subordinate unit to fund a program or project not included in the officially approved List of ODA Funding Requests by the Prime Minister, the managing agency shall submit a formal explanation to the Ministry of Planning and Investment, along with the detailed outlines of the program or project developed according to the guidance of this Circular. The Ministry of Planning and Investment will consult with relevant agencies to have a basis for submitting to the Prime Minister for approval to include this program or project in the official funding list.

- For regional programs or projects: The managing agency shall submit a formal document to the Prime Minister specifying the rights and obligations of participation in the project for the Prime Minister's consideration and decision.

- For other emerging cases, the Ministry of Planning and Investment will report to the Prime Minister for consideration and decision.

Within five working days from the date the Ministry of Planning and Investment submits the List of ODA Funding Requests to the Prime Minister, the Ministry of Planning and Investment will issue a formal letter to the managing agencies explaining the reasons why certain programs or projects were not included in the List of ODA Funding Requests.

6. Step 6: Announce the List of ODA Funding Requests

Within five working days from the date of receipt of the Prime Minister's decision approving the List of ODA Funding Requests for a specific donor, the Ministry of Planning and Investment will formally notify the donor through a diplomatic note of the List of ODA Funding Requests, accompanied by the detailed outlines of each program or project; simultaneously, it will issue a formal letter to the managing agencies regarding the programs or projects not approved by the Prime Minister.

7. Step 7: Announce the Official Funding List

Within five working days from the date of receipt of the formal notification from the donor accepting ODA funding for the programs or projects in the List of ODA Funding Requests approved by the Prime Minister or the signed document with the donor regarding the results of annual or periodic development cooperation negotiations approved by the Prime Minister, the Ministry of Planning and Investment will notify in writing the managing agencies of the programs or projects included in the Official Funding List and those not accepted by the donor.

The Decision of the Prime Minister on approving the List of ODA Grant Requirements and the Announcement of the Ministry of Planning and Investment on the Official Grant List serve as the legal basis for implementing the preparation of program and project documentation and other preparatory works.

Part III

PREPARATION, REVIEW, APPROVAL

CONTENT OF ODA PROGRAMS AND PROJECTS

I. ISSUING DECISION ON THE PROJECT OWNER AS PROVIDED FOR IN CLAUSE 1, ARTICLE 10 OF THE REGULATION IS GUIDED AS FOLLOWS:

Within five working days from the date of receipt of the written notification from the Ministry of Planning and Investment regarding the Official Grant List, the managing agency shall issue a decision on the owner of the program or project in accordance with Clause 16, Article 4 and Points a and b, Clause 1, Article 10 of the Regulation.

1. For national key investment programs and projects under the investment decision-making authority of the Prime Minister as provided for in Point a, Clause 1, Article 19 of the Regulation, the Prime Minister decides on the investor in the investment decision.

2. For technical assistance programs and projects under the approval authority of the Prime Minister as provided for in Point b, Clause 1, Article 19 of the Regulation, the Prime Minister decides on the owner of the technical assistance program or project in the Decision approving the program or project documentation.

3. For technical assistance programs and projects under the approval authority of the managing agency as provided for in Clause 2, Article 19 of the Regulation, the managing agency directly manages and implements or assigns a unit within its authority to manage and implement the project directly.

4. For investment programs and projects decided upon by the head of the managing agency as provided for in Clause 2, Article 19 of the Regulation, the person making the investment decision shall assign a unit responsible for managing and using the works to be the investor.

In cases where at the time of issuing the investment decision, the managing agency has not yet identified the unit responsible for managing, operating, and utilizing the works, the managing agency shall select a unit that meets the conditions to be the investor. During the implementation of the program or project, the managing agency must identify or establish a unit that will be responsible for managing and utilizing the works and assign tasks to this unit to participate together with the investor in the acceptance and operation of the works according to current regulations.

In cases where the unit responsible for managing, operating, and utilizing the investment program or project does not meet the conditions to be the investor as provided for in Point a, Clause 1, Article 10 of the Regulation, the managing agency shall select a unit that meets the conditions to be the investor. The investor is responsible for assigning personnel from the unit managing and utilizing the works to appropriate positions to participate in the management of the preparation and implementation of the program or project; and participate together with the investor in the acceptance and utilization of the works. In cases where the investor establishes a Project Management Board, one of the Deputy Directors of the Project Management Board must be a member of the unit managing and utilizing the works.

In cases where the program or project belongs to one managing agency and includes multiple components across various fields implemented and benefiting from units under its direct supervision, the managing agency shall select one of these units that have the capacity and conditions to be the owner of the program or project. The owner of the program or project shall establish a Project Management Board with the participation of the units implementing and benefiting from the components of the program or project.

5. For programs and projects under the approval authority of the managing agency:

- The managing agency of the program or project shall issue a decision assigning a subordinate unit to be the owner of the program or project and the main project component managed by itself (if applicable);

- The managing agencies of the sub-projects shall issue decisions on the owners of the sub-projects.

Within five working days from the date of issuing the decision on the owner of the program or project, the managing agency shall officially notify the Ministry of Planning and Investment and the corresponding donor.

II. PREPARATION OF ODA PROGRAM AND PROJECT DOCUMENTATION AS PROVIDED FOR IN POINT A, CLAUSE 2, ARTICLE 10 AND ARTICLES 13, 14, AND 15 OF THE REGULATION IS GUIDED AS FOLLOWS:

1. The project owner is responsible for coordinating with the donor and the owners of the sub-projects (in cases of program or project clusters) to organize the development of ODA program and project documentation, ensuring the progress and quality of the ODA program and project documentation.

2. The structure and content requirements of technical assistance project documentation, ODA-funded program documentation; program and project cluster documentation must be developed based on Model Appendices 4a, 4b, and 4c of this Circular.

Documentation for investment projects funded by ODA must be developed in accordance with current regulations on investment management and construction, taking into account the requirements set forth in Article 13 of the Regulation.

3. In cases where the program or sectoral approach is applied, the managing agency shall coordinate with the donor and relevant agencies to develop supporting documents accordingly.

III. REVIEW AND APPROVAL OF PROGRAMS AND PROJECTS AS PROVIDED FOR IN ARTICLES 16, 17, 18, AND 19 OF THE REGULATION IS GUIDED AS FOLLOWS:

1. Reviewing and Approving Technical Assistance Projects Funded by ODA

a) Determining the Leading Agency for Review

To ensure the quality of review work towards sustainability and professionalization, the managing agency needs to designate a specialized unit to undertake the task of reviewing programs and projects for technical assistance.

In cases where a specialized unit for reviewing technical assistance programs and projects has not been determined, depending on specific circumstances and the content of the technical assistance project, the managing agency may designate a subordinate unit with the appropriate professional capacity to undertake the task of reviewing the specific technical assistance project.

The project owner shall not undertake the task of reviewing their own technical assistance project.

For technical assistance projects under the approval authority of the Prime Minister, the Prime Minister shall decide on the leading agency for review based on the proposal of the Ministry of Planning and Investment.

b) Content of Review

Reviewing technical assistance projects funded by ODA must clarify the following contents:

- The rationality of the project concerning:

+ Development objectives compared to government priorities, donor principles and policies, and compared to the objectives already defined in the detailed outline and the Official Grant List;

+ Direct objectives, impacts of the project on specific development goals of ministries, sectors, localities, implementing entities, and beneficiaries;

+ Expected results (or outputs) of the project consistent with set objectives;

+ Each component of the project, outputs of each component, and activities generating these outputs;

+ Budget allocation structure of the project including ODA capital and counterpart funds for domestic and foreign consultants, training both domestically and internationally, equipment and materials, management costs, and other expenses;

+ Project implementation indicators.

- Feasibility of the project regarding:

+ Input factors (financial, equipment, experts, and others) of the entire project;

+ Objectives, results, activities, input requirements for each activity, and methods of organization and implementation;

+ Implementation timeline;

+ Management mechanisms and implementation organization (including financial management mechanisms, coordination mechanisms);

+ Project impacts from direct to indirect beneficiaries;

+ Risks and risk prevention measures;

+ Monitoring, evaluation, and promotion of project implementation measures (scope and responsibilities of the leading entity, coordination; information sharing and updating mechanism, project evaluation mechanism and reporting of evaluation results, measures to attract beneficiary interest and participation);

+ Vietnam's ability to contribute counterpart funds.

- Sustainability of the project regarding:

+ Necessary factors to ensure the effectiveness of the project after completion;

+ Commitments or conditions that sponsors and Vietnam may impose to ensure the sustainability of the project.

c) Timeframe for appraisal

Not exceeding fifteen working days from the date of receipt of complete and valid application files as stipulated in Clauses 1 to 4 of Article 17 of the Regulation.

d) Appraisal Process

- Step 1: Evaluation of the validity of the appraisal file

+ The evaluation of the validity of the appraisal file must comply with the provisions from Clauses 1 to 4 of Article 17 of the Regulation;

+ Compare and cross-check the content of the project document with six contents specified in the Prime Minister's Decision approving the List of ODA Assistance Requirements as stipulated in Article 8 of the Regulation;

+ In case the content of the project document differs from those in the Prime Minister's Decision approving the List of ODA Assistance Requirements concerning the project name and sponsor; the project managing agency; project objectives and results; implementation period; exceeding limits, changing ODA types (grant aid, loan capital); changing domestic financial sources and mechanisms for ODA, the leading appraisal organizing agency must report to the managing agency to seek consensus opinions from the Ministry of Planning and Investment, the Ministry of Finance, and related agencies, and submit to the Prime Minister for consideration and decision. Based on the Prime Minister's instructions, the managing agency will instruct the project proponent to perfect the project document and proceed with the appraisal process from Step 2 to Step 4 below.

- Step 2: Solicit opinions from relevant agencies

After receiving eight valid sets of documents from the project proponent, the leading appraisal organizing agency, through the managing agency, sends the documents along with a request for comments to the Ministry of Planning and Investment, the Ministry of Finance, and some related agencies and localities involved in the technical assistance project under appraisal.

- Step 3: Appraisal

The leading appraisal organizing agency selects one of the following two appraisal forms:

+ Form 1: Consolidation of appraisal opinions

This form applies to technical assistance projects with clear and consistent content with the detailed project outline attached to the approved ODA Assistance Requirements List by the Prime Minister and the consensus opinion of consulted agencies on the content of the project document. In this case, the leading appraisal organizing agency proceeds with the following steps:

For projects within the approval authority of the Prime Minister: The leading appraisal organizing agency prepares a report on the appraisal results along with the appraisal minutes according to Model Appendix 5 of this Circular for the managing agency to submit to the Prime Minister for approval of the project document.

For projects within the approval authority of the managing agency: The leading appraisal organizing agency prepares a report on the appraisal results along with the appraisal minutes according to Model Appendix 5 and a draft decision to approve the content of the project document according to Model Appendix 6 of this Circular for the managing agency to approve the project document.

If the project document file is incomplete, the leading appraisal organizing agency requests the project proponent to supplement, amend, and perfect the project file and proceed with the above steps.

+ Form 2: Organize an appraisal meeting

In cases where Form 1 cannot be applied, the leading appraisal organizing agency designates the chairperson, secretary, and organizes the appraisal meeting.

If the appraisal meeting concludes the approval of the project document, the leading appraisal organizing agency proceeds with the following steps:

For projects within the approval authority of the Prime Minister: The leading appraisal organizing agency prepares a report on the appraisal results along with the appraisal minutes according to Model Appendix 5 of this Circular for the managing agency to submit to the Prime Minister for approval of the project document.

For projects within the approval authority of the managing agency: The leading appraisal organizing agency prepares a report on the appraisal results along with the appraisal minutes according to Model Appendix 5 and a draft decision to approve the content of the project document according to Model Appendix 6 of this Circular for the managing agency to approve the project document.

If the project document file is incomplete, the leading appraisal organizing agency requests the project proponent to supplement, amend, and perfect the project file and proceed with the above steps.

- Step 4: Announce the approval result

Within ten working days from the date the Prime Minister (for projects within the approval authority of the Prime Minister) or the head of the managing agency (for projects within the approval authority of the managing agency) approves the project document, the managing agency informs the sponsor and the project proponent of the approval result, and simultaneously sends the Ministry of Planning and Investment, the Ministry of Finance the appraisal report, approval decision (original or certified copy), and the approved project document in Vietnamese and English stamped by the managing agency.

If the project document is not approved and requires improvement, the managing agency must instruct the project proponent to improve and reorganize the appraisal according to the guidelines in this Circular.

2. Appraisal and Approval of Projects Using ODA Funds

a) Determining the Leading Agency for Review

The determination of the leading agency for organizing the appraisal of ODA-funded investment projects shall be carried out in accordance with current regulations on investment management and construction.

b) Content of Review

In addition to the contents stipulated in investment management and construction documents, during the appraisal process, pay attention to the following points:

- Objective of the project: Compare with the objectives of the project as determined in the detailed proposal and in the Official Financing Program;

- Domestic financial mechanism for the ODA project;

- Total investment amount for the project, including the ODA capital must be compared with the total investment amount and ODA capital as determined in the detailed proposal and the Official Financing Program;

- The contribution capacity of Vietnam, particularly the counterpart capital, taking into account the disbursement regulations of the financier and the budget planning process of Vietnam;

- Factors affecting the progress and quality of the project during implementation, especially land clearance and bidding;

- Identification of risks and preventive measures against risks;

- Reasonableness of the organizational management method for implementing the project from the aspects of the management and implementation capability of the project sponsor and the coordination mechanism during implementation;

c) Timeframe for appraisal

Not exceeding 45 working days from the date of receiving complete valid documents as stipulated in Article 17 of the Regulation;

d) Appraisal Process

The appraisal process for investment projects using ODA capital shall comply with the current appraisal procedures for investment management and construction, noting the following contents:

- The evaluation of the validity of the appraisal dossier must comply with the provisions of Article 17 of the Regulation;

- Comparing and cross-referencing the content of the project documentation with the six items listed in the Prime Minister's decision approving the Official Financing Program as stipulated in Article 8 of the Regulation. In case it is found that the content of the project documentation has changes compared to the content stated in the Prime Minister's decision approving the Official Financing Program regarding the project name and financier; the project managing agency; project objectives and results; implementation period; exceeding limits, changing types of ODA capital (grant, loan); changing sources and domestic financial mechanisms for ODA capital, then the leading appraisal organization agency must report to the managing agency to seek consensus opinions from the Ministry of Planning and Investment, the Ministry of Finance, and related agencies, and submit to the Prime Minister for consideration and decision. Based on the Prime Minister's directive, the managing agency will instruct the project sponsor to perfect the project documentation and hand over to the leading appraisal organization agency to conduct the appraisal according to the procedure as guided herein;

- In cases where the financier organizes an on-site appraisal team, the project sponsor is responsible for organizing and arranging necessary conditions for the appraisal organization agency to send representatives to participate in the on-site appraisal;

- On the basis of the completed investment project documentation by the project sponsor, the leading appraisal organization agency is responsible for preparing an appraisal report for submission to the managing agency to the Prime Minister (for projects within the Prime Minister's approval authority) or to the head of the managing agency (for projects within the managing agency's approval authority) to approve the project documentation and issue an investment decision;

e) Notification of the investment decision and submission of the investment project documentation;

Within 10 working days from the date the Prime Minister (for projects within the Prime Minister's approval authority) or the head of the managing agency (for projects within the managing agency's approval authority) issues the investment decision, the managing agency shall notify in writing to the financier and the project sponsor, and simultaneously send the Ministry of Planning and Investment, the Ministry of Finance the appraisal report of the investment project, the investment decision (original or certified copy), and the approved project documentation in both Vietnamese and English stamped by the managing agency;

3. Appraisal and approval of program and project packages;

a) Determination of the leading appraisal agency;

The person issuing the decision to approve the program and project package documentation designates a subordinate unit to lead the appraisal or establishes an appraisal council chaired by their representative with the participation of representatives from the managing agencies of the component projects;

b) Content of Review

Based on the main content stipulated in Article 15 of the Regulation, during the appraisal process, the following contents need to be clarified:

- The overall framework of the program and project package, including the overall objectives of the program and project package and the objectives of the component projects, the relationship between the component projects;

- The main activities of the program and project package, of the component projects and their relationships during implementation, including the implementation period;

- Total ODA capital and domestic financial mechanism for the program and project package and component projects; sources and counterpart capital mechanisms for the program and project package and component projects;

- Organization and management methods for the program and project package:

+ The necessity of establishing a steering committee (if any); structure and operational mechanism of this committee;

+ Tasks, powers, and responsibilities of the managing agency of the program and project package and the managing agencies of the component projects;

+ Establishment of the Program Management Board and Component Project Management Boards in accordance with Circular 03/2007/TT-BKH dated March 12, 2007 of the Ministry of Planning and Investment;

+ Relationships, responsibilities, and task division between the program and project package sponsors and component project sponsors; between the Program Management Board and the Component Project Management Boards;

c) Timeframe for appraisal

Not exceeding 45 working days from the date the program managing agency receives complete valid documents as stipulated in Article 17 of the Regulation;

d) Appraisal Process

- Step 1: Evaluation of the validity of the appraisal file

+ Evaluation of the validity of the appraisal dossier must comply with the provisions of Article 17 of the Regulation;

+ Comparing and cross-referencing the content of the program and project package documentation with the six items listed in the Prime Minister's decision approving the Official Financing Program as stipulated in Article 8 of the Regulation;

+ In case the content of the program/project document O is found to have changes compared to the content stated in the Prime Minister's Decision approving the List of ODA Aid Requirements regarding the name of the program/project and the donor; the managing agency of the program/project; the objectives and results of the program/project; the implementation period of the program/project; exceeding the limit, changing the type of ODA capital (grant aid, loan capital); changing the domestic financial source and mechanism for ODA capital, the organizing agency or the appraisal council must report to the managing agency of the program/project O to seek the unified opinion of the Ministry of Planning and Investment, the Ministry of Finance, and related agencies, and submit to the Prime Minister for consideration and decision. Based on the guidance of the Prime Minister, the managing agency of the program/project O will instruct the program/project owner to complete the program/project document and hand it over to the organizing agency or the appraisal council to conduct the appraisal from step 2 to step 4 of this point.

- Step 2: Solicit opinions from relevant agencies

After receiving eight valid sets of files from the program/project owner O, the organizing agency for the appraisal will send the file set along with a request for comments (in case of seeking opinions) or participation in the appraisal meeting (in case of organizing an appraisal meeting) to the Ministry of Planning and Investment, the Ministry of Finance, representatives of component projects, some relevant agencies, units, and localities concerning the content of the program/project O under appraisal through the managing agency of the program/project O.

- Step 3: Appraisal

+ Form 1: Consolidation of appraisal opinions

This form applies to programs/projects O whose content is clear and consistent with the detailed outline of the program/project attached to the Prime Minister's Decision approving the List of ODA Aid Requirements, and all consulted agencies agree with the content of the program/project document O. In this case, the organizing agency or the appraisal council will proceed with the following steps:

For programs/projects within the approval authority of the Prime Minister: The organizing agency or the appraisal council prepares a report on the appraisal results accompanied by the appraisal record according to Model Appendix 5 of this Circular for the managing agency of the program/project O to submit to the Prime Minister for approval of the program/project document O.

For programs/projects within the approval authority of the managing agency: The organizing agency or the appraisal council prepares a report on the appraisal results accompanied by the appraisal record according to Model Appendix 5 and a draft decision to approve the content of the program/project document according to Model Appendix 6 of this Circular for the managing agency of the program/project O to approve the program/project document O.

If the program/project document file O is not yet complete, the organizing agency or the appraisal council requests the program/project owner O to cooperate with the component project owners to supplement, revise, and complete the program/project file O and proceed with the steps as mentioned above.

+ Form 2: Organize an appraisal meeting

In cases where Form 1 cannot be applied, the organizing agency or the appraisal council designates the chairperson, secretary, and organizes an appraisal meeting.

When the donor organizes an on-site appraisal team, the program/project owner O is responsible for organizing and arranging necessary conditions for the organizing agency or the appraisal council to send representatives to participate in the on-site appraisal.

If the appraisal meeting concludes the approval of the program/project document O, the organizing agency or the appraisal council will proceed with the following steps:

For programs/projects within the approval authority of the Prime Minister: The organizing agency or the appraisal council prepares a report on the appraisal results accompanied by the appraisal record according to Model Appendix 5 of this Circular for the managing agency of the program/project O to submit to the Prime Minister for approval of the program/project document O.

For programs/projects within the approval authority of the managing agency: The organizing agency or the appraisal council prepares a report on the appraisal results accompanied by the appraisal record according to Model Appendix 5 and a draft decision to approve the content of the program/project document according to Model Appendix 6 of this Circular for the managing agency of the program/project O to approve the program/project document O.

If the appraisal meeting requires supplementation and completion of the program/project document file, the organizing agency or the appraisal council requests the program/project owner O to cooperate with the component project owners to supplement, revise, and complete the program/project file according to the meeting's conclusions and proceed with the steps as mentioned above.

e) Announce the approval decision and send the program/project document O

Within ten working days from the date the Prime Minister (for programs/projects within the approval authority of the Prime Minister) or the head of the managing agency of the program/project O (for programs/projects within the approval authority of the head of the managing agency of the program/project O) issues the approval decision for the program/project O, the managing agency of the program/project O will notify in writing to the donor and the program/project owner O, and send a copy to the Ministry of Planning and Investment, the Ministry of Finance for reporting on the appraisal, approval decision for the program/project (original or certified copy) and the approved program/project document O in Vietnamese and English stamped with the seal of the managing agency. The managing agency of the program/project O sends copies of these documents to the managing agencies of the component projects.

- Appraisal and approval of component projects within the framework of the program/project O: Depending on the level of preparation, time, and implementation plan of the component project, the managing agency of the component project will organize the appraisal and approval of its own project. Specifically:

+ For technical assistance projects: according to the appraisal and approval process stipulated in Point 1, Section III Part of this.

+ For investment projects: according to the appraisal and approval process stipulated in Point 2, Section III Part of this.

4. Appraisal and approval of program or sector access support documents

The appraisal process for program or sector access support documents is similar to the appraisal process for ODA programs/projects stipulated in Point 3, Section III Part of this.

Issuing a decision to approve the program, planning, development sector or field will approve access support according to the program or sector.

5. Appraisal and approval of regional programs/projects

The managing agency is responsible for appraising and approving Vietnam's participation portion similarly to other ODA programs/projects specified in Points 1, 2, and 3, Section III Part of this.

Part IV

SIGNING SPECIFIC INTERNATIONAL AGREEMENTS ON ODA

I. CONCLUSION OF SPECIFIC INTERNATIONAL AGREEMENTS ON ODA SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE LAW ON THE CONCLUSION, JOINING AND IMPLEMENTATION OF INTERNATIONAL AGREEMENTS AND ACCORDING TO THE GUIDELINES OF THE MINISTRY OF FOREIGN AFFAIRS REGARDING THE PROCEDURE AND PROCEDURES FOR CONCLUDING AND IMPLEMENTING INTERNATIONAL AGREEMENTS RELATED TO OFFICIAL DEVELOPMENT ASSISTANCE RESOURCES

II. RESPONSIBILITY FOR SUBMITTING TO THE GOVERNMENT FOR THE CONCLUSION OF SPECIFIC INTERNATIONAL AGREEMENTS ON ODA AS PROVIDED FOR IN CLAUSE 2, ARTICLE 21 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

1. The Ministry of Planning and Investment shall be responsible for submitting to the Prime Minister for the conclusion of specific international agreements on non-reimbursable ODA (except for specific international agreements on ODA with international financial institutions as provided for in Clause 1, Article 42 of the Regulations) for ODA programs and projects under agencies directly under the National Assembly, central agencies of political and social organizations, occupational associations, and provincial People's Committees and centrally governed cities.

2. To fulfill the above responsibility, in accordance with the procedures and procedures for concluding and implementing international agreements related to official development assistance resources, the Ministry of Planning and Investment shall submit to the Prime Minister:

a) Regarding the negotiation and conclusion of specific international agreements on ODA based on the formal proposal document of the managing agency as stipulated at point 1, Section II of this Part sent to the Ministry of Planning and Investment along with all necessary documents and carried out strictly according to the specified timeline;

b) Regarding the approval or endorsement of specific international agreements on ODA by the managing agency as stipulated at point 1, Section II of this Part in cases where such specific international agreements on ODA must be approved or endorsed to complete the procedures for the effectiveness of the agreement;

c) The implementation plan for specific international agreements on ODA established by the managing agency as stipulated at point 1, Section II of this Part and submitted to the Ministry of Planning and Investment.

3. In cases where authorized by the Prime Minister, the managing agency as stipulated at point 1, Section II of this Part shall implement the responsibility of establishing and concluding specific international agreements on ODA in accordance with current regulations.

III. RESPONSIBILITY FOR SUBMITTING TO THE PRIME MINISTER FOR THE AMENDMENT, MODIFICATION, AND SUPPLEMENTATION OF SPECIFIC INTERNATIONAL AGREEMENTS ON ODA AS PROVIDED FOR AT POINT A, CLAUSE 1, ARTICLE 31 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

During the implementation of specific international agreements on ODA, if there are amendments, modifications, or supplements as stipulated at point a, clause 1, Article 31 of the Regulations, the agency proposing the conclusion of specific international agreements on ODA shall seek written opinions from the Ministry of Planning and Investment and relevant agencies to submit to the Prime Minister for consideration and decision in accordance with current regulations regarding the amendment, modification, and supplementation of specific international agreements on ODA.

PART V

MANAGEMENT OF IMPLEMENTATION OF ODA PROGRAMS,

PROJECTS

I. ESTABLISHMENT AND ORGANIZATION OF ACTIVITIES OF THE PROGRAM AND PROJECT MANAGEMENT BOARD (PROJECT MANAGEMENT BOARD) AS PROVIDED FOR IN ARTICLE 25 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

The procedures for establishment, organizational structure, functions, tasks, authorities of the ODA project management board, the relationship of responsibility between the project management board and the project owner, the managing agency, and state management agencies are stipulated in Circular No. 03/2007/TT-BKH dated March 12, 2007 of the Ministry of Planning and Investment on the organizational structure and functions of program and project management boards.

For programs and projects, based on the program and project documents that have been approved by competent authorities:

- The program/project owner establishes the program/project management board concurrently serving as the component project management board (if applicable).

- Based on mutual agreement with the program/project owner regarding the organizational structure, functions, responsibilities, and authorities for the program/project and component projects, the component project owner establishes the component project management board.

II. TASKS OF THE MANAGING AGENCY, PROJECT OWNER, AND PROJECT MANAGEMENT BOARD RELATING TO THE IMPLEMENTATION PLAN OF THE PROGRAM AND PROJECT AS PROVIDED FOR AT POINT A, CLAUSE 1, ARTICLE 35 AND CLAUSE 7, ARTICLE 39 OF THE REGULATIONS ARE GUIDED AS FOLLOWS:

1. Review, update, and approve the implementation plan of the program and project

a) Immediately after the establishment of the project management board, the managing agency and project owner shall direct the project management board to coordinate with the donor to review, update, and adjust (if necessary) the overall implementation plan of the ODA program and project, detailing the implementation plan for the first year.

b) The content of reviewing and updating the implementation plan includes:

- Timeframes (start, end) for each component, outputs, and major activities of the program and project, and for the entire program and project;

- Workloads to be completed for each phase including some activities that can be implemented before the specific international agreement on ODA comes into effect;

- Input resource volumes required for each component, output, and activity corresponding to each phase, including some activities that can be implemented before the specific international agreement on ODA comes into effect.

During the process of reviewing and updating the overall implementation plan of the program and project, if only the implementation schedule (start, end) of components, outputs, and activities of the program and project is adjusted without changing the completion deadline of the program and project as stipulated in the program and project documents, the managing agency shall issue a decision to approve the overall implementation plan of the program and project.

2. Within five working days from the date of approval of the overall plan, the managing agency shall send the approval decision (original) to the Ministry of Planning and Investment, the Ministry of Finance, and the donor as the basis for monitoring and evaluating the implementation of the program and project.

3. Based on the updated overall implementation plan of the program and project approved by the managing agency, the project owner shall approve the detailed implementation plan of the ODA program and project for the first year and subsequent years.

4. The annual implementation plan of the ODA program and project must be developed and approved in accordance with the annual planning schedule of the managing agency.

The annual implementation plan for programs and projects serves as the basis for allocating resources to the activities of such programs and projects, and it forms the foundation for developing quarterly implementation plans, serving management, monitoring, inspection, evaluation, and rewarding project management activities of the Project Management Board.

5. The Project Management Board is responsible for preparing the disbursement plan according to Appendix 7 of this Circular. The project sponsor submits the annual disbursement plan to the supervising authority for consolidation and reporting in accordance with the guidelines for annual planning issued by the Ministry of Planning and Investment.

III. RELOCATION AND RESIDENTS' REHABILITATION AS PROVIDED FOR IN ARTICLE 29 OF THE REGULATIONS ARE GUIDED AS FOLLOWS:

The project sponsor shall develop a compensation, land clearance, and relocation plan for ODA programs and projects in accordance with current regulations on compensation, land clearance, and relocation.

Prior to approving the program or project documentation, if the donor's regulations on compensation, land clearance, and relocation differ from the current regulations on compensation, land clearance, and relocation of Vietnam, then the supervising authority must submit to the Prime Minister for consideration and decision.

In cases where the regulations on compensation, land clearance, and relocation in specific ODA international agreements already signed differ from the current regulations on compensation, land clearance, and relocation of Vietnam, the specific ODA international agreement already signed shall be followed.

A unified compensation and relocation plan must be notified to relevant functional agencies and publicly announced to affected parties.

IV. PROCUREMENT AS PROVIDED FOR IN ARTICLE 30 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

Procurement activities for ODA programs and projects must comply with current procurement regulations.

Prior to approving the program or project documentation, if the donor's regulations on procurement differ from the current procurement regulations of Vietnam, then the supervising authority must submit to the Prime Minister for consideration and decision.

In cases where the regulations on procurement in specific ODA international agreements already signed differ from the current procurement regulations of Vietnam, the specific ODA international agreement already signed shall be followed.

In this case, the project sponsor must direct the Project Management Board to coordinate with the donor to integrate the donor’s review procedures, processes, and deadlines with the procedures for submission, review, and approval of procurement plans and contractor selection results under current Vietnamese regulations. This integration process must be publicly announced to all parties involved in the procurement activity.

V. GUIDELINES FOR ADJUSTING, AMENDING, AND SUPPLEMENTING CONTENT OF PROGRAMS AND PROJECTS DURING IMPLEMENTATION AS PROVIDED FOR IN ARTICLE 31 OF THE REGULATIONS ARE GUIDED AS FOLLOWS:

1. Regarding changes in domestic financial mechanisms or conditions for domestic loan rescheduling as stipulated in Point b, Clause 1, Article 31, the project sponsor reports to the supervising authority so that the supervising authority can seek the unified opinion of the Ministry of Planning and Investment and the Ministry of Finance, and submit to the Prime Minister for consideration and decision.

2. For surplus funds arising from exchange rate changes, interest rate changes, unallocated contingency funds, and other surplus funds generated during implementation as stipulated in Point b, Clause 2, Article 31, the supervising authority agrees with the Ministry of Planning and Investment, the Ministry of Finance, and the donor to decide on the use of these surplus funds within the scope of the program or project and implement them according to current regulations.

3. For surplus funds intended for new programs or projects as stipulated in Point a, Clause 2, Article 31, based on the proposal of the supervising authority, the Ministry of Planning and Investment submits to the Prime Minister for permission to use these surplus funds. After the Prime Minister approves the use of surplus funds, the supervising authority conducts a review and approval of the program or project documentation and implements it according to current regulations.

PART VI

MONITORING AND EVALUATION OF THE PROGRAMME

PROJECTS

I. MONITORING OF THE PROGRAMME AND PROJECTS AS PROVIDED FOR IN ARTICLES 33 AND 35 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

1. REQUIREMENTS AND OBJECTIVES OF MONITORING THE PROGRAMME AND PROJECTS:

a) Ensuring accurate, complete, and regular (daily, weekly, monthly, annually) updates on information related to the implementation and management of the programme and projects;

b) Ensuring timely identification of difficulties, obstacles, and incidents affecting the progress, quality, and cost of the programme and projects;

c) Ensuring timely proposal and implementation of necessary measures to address difficulties, obstacles, and incidents to ensure that the programme and projects are implemented according to their objectives within the time and resource limits set.

2. RESPONSIBILITIES AND CONTENT OF MONITORING THE PROGRAMME AND PROJECTS

a) Project Management Board

Monitoring activities are part of daily management operations and are the responsibility of the Project Management Board.

Content of monitoring at the Project Management Board level:

- Monitoring and updating the situation regarding the implementation of the programme and projects including:

+ Progress of project implementation;

+ Volume of work completed;

+ Quality;

+ Costs;

+ Variations;

- Monitoring and updating the situation regarding the management of the programme and projects including:

+ Developing and detailing plans for implementing management tasks of the programme and projects;

+ Updating the implementation status and adjusting plans;

+ Updating the status of ensuring quality and effectiveness of programme and project management.

- Monitoring and updating the situation regarding the handling and feedback of programme and project information including:

+ Ensuring reporting information;

+ Handling reported information;

+ Status and results of resolving difficulties and obstacles.

b) Project Owner

- Directing, supervising, and inspecting the completeness, timeliness, and accuracy of monitoring information conducted by the Project Management Board;

- Allocating necessary resources to ensure monitoring activities at the Project Management Board;

- Promptly responding and addressing issues within their authority arising during the implementation of the programme and projects;

- Reporting and proposing solutions to difficulties, obstacles, and issues exceeding their authority to relevant managing authorities for timely decisions to resolve programme and project implementation issues.

c) Managing Authority

For programmes and projects under their management authority, the managing authority has the responsibility:

- Inspecting the completeness, timeliness, and accuracy of monitoring information provided by the project owner;

- Promptly responding and addressing issues within their authority;

- Supervising and monitoring changes from the plan (regarding implementation progress, disbursement, bidding, land clearance, resettlement, environmental protection, and social welfare) of the programmes and projects;

- Reporting and proposing solutions to difficulties, obstacles, and issues exceeding their authority to relevant authorities for timely decisions to resolve programme and project implementation issues;

- Establishing and organizing information systems, monitoring and management regulations for programmes and projects within their management scope;

- Ensuring necessary resources (staff, finance, technical facilities, and other related matters) for monitoring activities of programmes and projects at the managing authority. Supporting and enhancing the monitoring capacity of programmes and projects for project owners.

d) State Management Authorities for ODA

Implementing the function of monitoring ODA programmes and projects as stipulated in Chapter VI and Chapter VII of the Regulations and have the responsibility to provide feedback on monitoring information to managing authorities and donors.

II. EVALUATION OF THE PROGRAMME AND PROJECTS AS PROVIDED FOR IN ARTICLES 34 AND 35 OF THE REGULATIONS IS GUIDED AS FOLLOWS:

1. REQUIREMENTS AND OBJECTIVES OF EVALUATION FOR EACH SPECIFIC PROGRAMME AND PROJECT:

a) Comparing achieved results at the evaluation point with the programme and project implementation plan;

b) Identifying difficulties and obstacles that have occurred or are potential during the implementation of the programme and projects;

c) Evaluating the implementation of principles and procedures for programme and project management;

d) Proposing measures to promote the programme and projects to progress towards their objectives in accordance with regulations on progress, scope, volume, quality, budget, and management principles and procedures;

e) In necessary cases, recommending adjustments to certain contents in programme and project documentation and/or implementation plans;

g) Drawing lessons learned to apply to subsequent phases of the evaluated programme and projects and/or to other programmes and projects.

2. EVALUATION WORK

To ensure objectivity and transparency, evaluation work must be conducted by experts or independent consultant groups hired according to current regulations, having the necessary expertise and experience. The project owner must coordinate with the donor to determine the timing and funding for the evaluation work from the design stage of the programme and project documentation;

Depending on specific circumstances and agreements with the donor, evaluation stages may include:

a) Initial Evaluation

Initial evaluation must be conducted immediately after the start of the programme and project implementation.

Initial evaluation can be carried out by the project owner assigning it to the Project Management Board or hiring an independent consultant.

Initial evaluation focuses on examining the actual situation of the programme and project after commencement regarding:

- Preparation work, organization, and mobilization of resources by the Project Management Board to ensure the implementation of the programme and project according to the set objectives and plans;

- Issues arising compared to approved programme and project documentation;

- Directions for resolving encountered difficulties and obstacles;

Arising due to objective factors such as changes in the legal environment, requirements to adjust the progress or content of certain items to be consistent with weather, geological conditions, or subjective factors such as the capacity and organizational structure of the Project Management Board.

The initial evaluation results are used to review and update the overall implementation plan for the program or project and to develop detailed plans for implementing the program or project for the first year.

b) Mid-term evaluation

Mid-term evaluation is organized by the Project Management Board to hire experts or independent consulting organizations to conduct it midway through the implementation period of the program or project or after completing a phase for programs or projects consisting of multiple phases.

Mid-term evaluation focuses on:

- The appropriateness of the program or project implementation results compared to the set objectives;

- The level of completion of the program or project up to the time of evaluation compared to the approved implementation plan;

- Recommendations, including design and program or project target adjustments if necessary;

- Lessons learned from designing, implementing, and managing programs or projects.

Within the latest one month from the date of receiving the mid-term evaluation report from the consultant, the project owner must submit to the supervisory agency and the financier the mid-term evaluation report prepared by the consultant and the project owner's response to the mid-term evaluation report, analyzing findings, issues, and recommendations of the evaluation report, clearly stating measures to address issues, necessary activities to meet recommendations, and lessons learned in organizing the implementation of the program or project.

Mid-term evaluation reports and responses for programs or projects decided to be invested in by the Prime Minister and group A programs or projects must be submitted through the supervisory agency to the Ministry of Planning and Investment and the Ministry of Finance for monitoring, tracking, and evaluation purposes.

c) Final evaluation

Final evaluation of the program or project is organized by the Project Management Board to hire experts or independent consulting organizations to conduct it immediately upon completion and must be completed within the latest six months from the date of completion of the program or project as specified in the program or project documentation. Final evaluation focuses on examining and comprehensively evaluating all aspects:

- Program or project design;

- Program or project implementation process;

- Program or project management activities;

- Achievement of program or project objectives;

- Resources mobilized for the program or project;

- Benefits brought by the project to beneficiaries and participants;

- Impacts of the program or project;

- Sustainability of the program or project and factors ensuring its sustainability;

- Lessons learned during the implementation of the program or project;

- Necessary recommendations.

The final evaluation report prepared by the consultant and the project owner's comments must be reported and sent to the supervisory agency and the financier.

The final evaluation report prepared by the consultant serves as a basis for the Project Management Board and the project owner to prepare the final program or project report.

The final evaluation report of the consultant for programs or projects decided to be invested in by the Prime Minister and group A programs or projects must be submitted to the Ministry of Planning and Investment and the Ministry of Finance for monitoring, tracking, and evaluation purposes.

d) Impact assessment (Post-project evaluation)

The Ministry of Planning and Investment leads and coordinates with the supervisory agency and the financier to develop an annual plan for assessing the impacts of ODA programs or projects.

Impact assessment is led by the supervisory agency and conducted by hiring experts or independent consulting organizations. For national key projects, impact assessment is carried out by an independent consultant selected, approved, or authorized by the Prime Minister to select, or delegated to the Ministry of Planning and Investment to select.

Impact assessment is conducted within three years from the date the program or project is put into operation and focuses on the following main issues:

- The current economic and technical operation status of the program or project;

- The economic-political-social impacts of the program or project;

- The ecological environmental impacts of the program or project;

- The sustainability of the program or project;

- Successful and failed lessons from the design-execution-operation stages of the program or project.

The impact assessment report for programs or projects decided to be invested in by the Prime Minister and group A programs or projects must be submitted to the Ministry of Planning and Investment and the Ministry of Finance for portfolio management and investment strategy and policy development.

e) Ad hoc evaluation

Ad hoc evaluation is conducted in cases where there are difficulties, unforeseen impacts during the implementation of the program or project.

Ad hoc evaluation focuses on clarifying the following issues:

- Determining the status and nature of unforeseen occurrences;

- The impact and degree of impact of these occurrences on the implementation of the program or project and the ability to achieve set goals;

- Recommending intervention measures, responsible agencies, and deadlines for completion.

The supervisory agency leads and coordinates with relevant agencies and financiers to organize ad hoc evaluation teams.

The ad hoc evaluation report serves as a basis for the supervisory agency to intervene promptly and implement necessary support measures to prevent the failure of the program or project.

In cases where handling measures exceed the authority of the supervisory agency, the supervisory agency sends a document along with the ad hoc evaluation report to related state management agencies or submits it to the Prime Minister for consideration and decision.

III. REPORT ON THE IMPLEMENTATION SITUATION OF PROGRAMS AND PROJECTS AS PROVIDED FOR IN ARTICLE 36 OF THE REGULATION IS GUIDED AS FOLLOWS:

1. The reporting system for the implementation of ODA programs and projects consists of three levels:

a) Level of the project sponsor (referred to as the project level): The project sponsor shall prepare a report on the implementation status of the ODA program/project and submit it to the supervising agency, the Ministry of Planning and Investment, the Ministry of Finance, relevant ministries and sectors, the People's Committee of the province where the program/project is implemented, and the donor.

b) Level of the supervising agency: The supervising agency shall prepare a consolidated report on the results of fundraising and the assessment of the implementation status of ODA programs/projects under its management authority and submit it to the Ministry of Planning and Investment and the Ministry of Finance.

c) Level of the national ODA management agency: The Ministry of Planning and Investment and the Ministry of Finance shall prepare a consolidated report on the situation of attracting and utilizing ODA nationwide and the disbursement status of ODA programs/projects for submission to the Prime Minister in accordance with regulations and notify relevant agencies.

2. Reporting system and reporting forms: To be implemented according to the specific provisions set forth in Decision No. 803/2007/QD-BKH dated July 30, 2007, issued by the Minister of Planning and Investment regarding the issuance of the reporting system for the implementation status of ODA programs/projects.

a) The project sponsor shall implement periodic monthly reporting (for investment programs/projects within the approval authority of the Prime Minister and those equivalent to Group A), quarterly, annually, and final reports upon completion of the program/project.

b) The supervising agency shall implement quarterly periodic reporting.

c) The Ministry of Planning and Investment and the Ministry of Finance shall implement semi-annual periodic reporting and annual reports.

3. Reward system:

The Ministry of Planning and Investment shall apply appropriate reward and encouragement measures for agencies and units that effectively implement the reporting system stipulated in Decision No. 803/2007/QD-BKH dated July 30, 2007, issued by the Minister of Planning and Investment regarding the issuance of the reporting system for the implementation status of ODA programs/projects.

4. Sanctions for violations of the reporting system:

For cases of violation of the reporting system, the Ministry of Planning and Investment will apply the following sanctions:

a) Infrequent violation of the reporting system: The Ministry of Planning and Investment shall issue a document requesting the violating agency to explain the reasons for the violation and commit to implementing corrective measures.

b) Systematic violation of the reporting system: The Ministry of Planning and Investment shall publish a list of violating agencies on the Ministry’s electronic news site, and simultaneously apply measures when compiling the ODA funding request list proposed by these agencies for submission to the Prime Minister.

c) Systematic and prolonged violation of the reporting system: The Ministry of Planning and Investment shall report such cases to the Prime Minister and propose appropriate measures including recommending that the Prime Minister not approve ODA funding requests proposed by these agencies until compliance with the reporting system improves.

The supervising agency shall establish appropriate reward measures and sanctions to ensure compliance with the reporting system regulations by project sponsors and project management boards under its management authority.

Part VII

IMPLEMENTATION

I. This Circular replaces Circular No. 06/2001/TT-BKH dated September 20, 2001, guiding the implementation of the regulations on the management and utilization of official development assistance funds promulgated together with Decree No. 17/2001/NĐ-CP dated May 4, 2001, of the Government.

II. For ongoing programs and projects

1. Contents of programs and projects within the approval authority of the Prime Minister under Decree No. 17/2001/NĐ-CP now fall under the approval authority of the head of the supervising agency under Decree No. 131/2006/NĐ-CP, then issues related to the decision-making authority for approving programs and projects shall be carried out in accordance with Decree No. 131/2006/NĐ-CP.

2. The supervising agency shall review the implementation plan of the program/project to supplement monitoring and evaluation content and ensure resources for implementation.

III. This Circular takes effect 15 days from the date of publication in the Official Gazette. Any difficulties encountered during implementation should be promptly reported to the Ministry of Planning and Investment for further supplementation and improvement of this Circular./.